Hang Seng Index (HSI) - More downside bias in the near term
Retesting the 20,000 key support:The HSI could see further correction this week to re-test the 20,000 resistance-turned-support level.
Technical indicators showing bearish signals:With the RSI heading lower and the MACD indicator on the verge of a bearish crossover, it is likely that the near term correction could extend this week.
Shanghai Stock Exchange Composite (SSEC) - Long awaited correction to continue
In a correction stance: SSEC is likely to head lower in the coming week after its failure to re-test and break above the key 3456 resistance successfully.
Bearish divergence: The RSI has been signaling a bearish divergence to the price action over the last one month, suggesting that further correction could be inevitable.
Bearish crossover by the MACD indicator:With the MACD exhibiting a bearish crossover last week, we could see the index sliding further this week.
Nikkei 225 - Heavily overbought signals suggest more downside bias
Doji candlestick suggests uncertainty:With the emergence of a Doji candlestick yesterday signifies that the market is getting uncertainty and points to potential near-term consolidation; there is also a risk that the index head south to retest the key resistance-turned-support level at 10,162.
RSI heavily overbought: With the RSI still showing heavily overbought signals, the index also looks likely to correct further in the near term.
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